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Regular Contributor
KeithW
Posts: 189
Registered: ‎02-22-2012

Lenders and Dealership Options...

I have bought our last two cars from the same dealership and both times we used Chase Auto Finance. For our next vehicle we are looking at a different dealership, because of brand, and I am wondering if they would be able to use chase as well or if certain dealers only deal with certain finance companies.

 

I have been very happy with Chase and they gave me a very good interest rate for my credit score. They gave me 5% through the dealer.

Current Score: FICO EQ637-TU690-EX704
Wallet: Cap One Rew. $2000, Cap One Plat. $2000, Barclay $3000, Old Navy Visa $2000, HSBC $1500, Credit One $1800, BoA $3000, Chase Freedom $1500, Wal-Mart Discover $2000, Amazon $1800, Lowes $1500, Kay's $7000
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HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009

Re: Lenders and Dealership Options...

Assuming it is a major manufacturer dealership Chase should certainly be in their network. But a better plan for you may be to contact Chase on your own and get pre-approved for financing within the price range you want. They can do it without having a specific vehicle in mind. Then go to the new dealership and see if they can beat the offer you have in hand. The 5% offer is fair if it is still available on the next car but oftentimes the dealer can do better especially with a good auto loan history.

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hudsons1
Posts: 1
Registered: ‎09-25-2013

Re: Lenders and Dealership Options...

I think Chase is fairly universal. I had a blank check from Cap One after WF, the bank that I had a 20-year relationship with, turned me down. Took it to the Nissan dealer and allowed them to compete with Cap for my loan. They beat it with Chase. Very happy so far.

Regular Contributor
KeithW
Posts: 189
Registered: ‎02-22-2012

Re: Lenders and Dealership Options...

I had a similar experience when we bought this last car. I tried to get pre-approved through Chase, but they denied me. Then the dealership got me my current loan through them. Not sure why this was as our last car loan was through Chase as well and only had one 30 day late payment during the 4 years we had the loan.

 

Now that my scores are higher and we won't have any late payments things may be different.

Current Score: FICO EQ637-TU690-EX704
Wallet: Cap One Rew. $2000, Cap One Plat. $2000, Barclay $3000, Old Navy Visa $2000, HSBC $1500, Credit One $1800, BoA $3000, Chase Freedom $1500, Wal-Mart Discover $2000, Amazon $1800, Lowes $1500, Kay's $7000
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Revelate
Posts: 8,139
Registered: ‎12-30-2011

Re: Lenders and Dealership Options...


KeithW wrote:

I had a similar experience when we bought this last car. I tried to get pre-approved through Chase, but they denied me. Then the dealership got me my current loan through them. Not sure why this was as our last car loan was through Chase as well and only had one 30 day late payment during the 4 years we had the loan.

 

Now that my scores are higher and we won't have any late payments things may be different.


I think with Chase as with Wells there's a seperate financing arm for dealers.  I think in general the underwriting requirements from Chase the consumer bank are tighter than the ones for Chase the dealer lending partner... that seems to hold true elsewhere from various reports and I think I've seen ones to that effect with Chase as well.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 703, TU 708, EX 702* (05/30/14, EX older)
Goal Score: 700 in all three (01/01/15)


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Regular Contributor
KeithW
Posts: 189
Registered: ‎02-22-2012

Re: Lenders and Dealership Options...

Can you shed any light on what the reasoning might be for that? Are they figuring that the local dealer can size you up and make a better decision than they can way off in another state?

Current Score: FICO EQ637-TU690-EX704
Wallet: Cap One Rew. $2000, Cap One Plat. $2000, Barclay $3000, Old Navy Visa $2000, HSBC $1500, Credit One $1800, BoA $3000, Chase Freedom $1500, Wal-Mart Discover $2000, Amazon $1800, Lowes $1500, Kay's $7000
Moderator
Revelate
Posts: 8,139
Registered: ‎12-30-2011

Re: Lenders and Dealership Options...


KeithW wrote:

Can you shed any light on what the reasoning might be for that? Are they figuring that the local dealer can size you up and make a better decision than they can way off in another state?


It's different business units; they may have even been different companies at one point given Chase's growth through acqusition over the last few decades.  Any banks invariably split business and consumer banking, and have different policies for each.  Loan origination and underwriting are seperate.

 

I don't know the full ins and outs, but there are some differences between LO at least on the consumer side (direct to you and me), and on the dealer services side where it's usually just the F&I guy with a bundled package of loans.  It's a different negotation, and if I had to guess, it takes the individual F&I guy and the individual dealership into account: namely, the historical portfolio performance can be used as to whether to accept the loans or not. 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 703, TU 708, EX 702* (05/30/14, EX older)
Goal Score: 700 in all three (01/01/15)


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